Vendor Managed Inventory ( VMI) can bring substantial cost savings to any business by pushing responsibility for the replenishment of stock to the Vendor . HDL will set up as a third party between Customer and Vendor to ensure best Inventory practice against agreed terms and levels for all BOM items. This process will obviously reduce unwanted Inventory and minimize the possibility of component obsolescence , with the Customer only becoming the ‘owner ‘ of the Inventory at point of use or manufacture.